Comparing Avid Bioservices (NASDAQ:CDMO) & Teva Pharmaceutical Industries (NYSE:TEVA)

Teva Pharmaceutical Industries (NYSE:TEVAGet Rating) and Avid Bioservices (NASDAQ:CDMOGet Rating) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Teva Pharmaceutical Industries and Avid Bioservices’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teva Pharmaceutical Industries 2.63% 24.40% 5.67%
Avid Bioservices 12.13% 27.58% 5.51%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Teva Pharmaceutical Industries and Avid Bioservices, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teva Pharmaceutical Industries 0 4 2 0 2.33
Avid Bioservices 0 0 4 0 3.00

Teva Pharmaceutical Industries presently has a consensus price target of $12.00, indicating a potential upside of 18.69%. Avid Bioservices has a consensus price target of $29.50, indicating a potential upside of 65.73%. Given Avid Bioservices’ stronger consensus rating and higher possible upside, analysts clearly believe Avid Bioservices is more favorable than Teva Pharmaceutical Industries.

Institutional and Insider Ownership

47.6% of Teva Pharmaceutical Industries shares are held by institutional investors. Comparatively, 87.8% of Avid Bioservices shares are held by institutional investors. 0.7% of Teva Pharmaceutical Industries shares are held by company insiders. Comparatively, 1.5% of Avid Bioservices shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Teva Pharmaceutical Industries and Avid Bioservices’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teva Pharmaceutical Industries $15.88 billion 0.70 $417.00 million $0.38 26.61
Avid Bioservices $95.87 million 11.46 $11.21 million $0.16 111.26

Teva Pharmaceutical Industries has higher revenue and earnings than Avid Bioservices. Teva Pharmaceutical Industries is trading at a lower price-to-earnings ratio than Avid Bioservices, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Teva Pharmaceutical Industries has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Avid Bioservices has a beta of 2.18, meaning that its stock price is 118% more volatile than the S&P 500.

Summary

Avid Bioservices beats Teva Pharmaceutical Industries on 10 of the 14 factors compared between the two stocks.

Teva Pharmaceutical Industries Company Profile (Get Rating)

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally. The company offers sterile products, hormones, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams. It also develops, manufactures, and sells active pharmaceutical ingredients. In addition, it focuses on the central nervous system, pain, respiratory, and oncology areas. Its products in the central nervous system include Copaxone for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine; and AUSTEDO for the treatment of tardive dyskinesia and chorea associated with Huntington disease. The company's products in the respiratory market comprise ProAir, QVAR, ProAir Digihaler, AirDuo Digihaler, and ArmonAir Digihaler, BRALTUS, CINQAIR/CINQAERO, DuoResp Spiromax, and AirDuo RespiClick/ArmonAir RespiClick for the treatment of asthma and chronic obstructive pulmonary disease. Its products in the oncology market include Bendeka, Treanda, Granix, Trisenox, Lonquex, and Tevagrastim/Ratiograstim. Teva Pharmaceutical Industries Limited has a collaboration MedinCell for the development and commercialization of multiple long-acting injectable products, a risperidone suspension for the treatment of patients with schizophrenia. The company was founded in 1901 and is headquartered in Tel Aviv-Yafo, Israel.

Avid Bioservices Company Profile (Get Rating)

Avid Bioservices, Inc., a contract development and manufacturing organization, provides process development and current good manufacturing practices (CGMP) clinical and commercial manufacturing services focused on biopharmaceutical drug substances derived from mammalian cell culture. It produces monoclonal antibodies and recombinant proteins; and offers services, including CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submission and support. The company also provides various process development services, such as upstream and downstream development and optimization, analytical methods development, testing, and characterization. It serves biotechnology and pharmaceutical companies. The company was formerly known as Peregrine Pharmaceuticals, Inc. and changed its name to Avid Bioservices, Inc. in January 2018. Avid Bioservices, Inc. was incorporated in 1981 and is headquartered in Tustin, California.

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